Residential Leasehold for Flats

Lord Goddard of Stockport Excerpts

Thursday 30th November 2023 Lords Chamber

[Baroness Penn (Con)]

My Lords, I have tried to learn not to be surprised by any amendments tabled to government Bills by your Lordships’ House, but I would like to reassure my noble friend that this Bill is focused on helping leaseholders now by making existing leases fairer and more affordable. We have focused on legislating where we can make a genuine improvement to leaseholders’ daily lives right away. For example, we are making it cheaper and easier for leaseholders to purchase the freehold of their building or a 999-year lease on their property and take control of their building’s management from the freeholder. When it comes to reforms to commonhold, we continue to consider the Law Commission’s report in detail to find the best way forward and we are committed to taking forward that additional work.

[Lord Goddard of Stockport (LD)]

My Lords, one of the most expensive consequences of being a leaseholder, especially in flats, is the service charges that freeholders can level against you. They are completely unregulated and can be totally exorbitant. Does the Minister agree that we need to abolish service charges, especially for flats, and replace them with a commonhold system, which would be much fairer for leaseholders and would stop unscrupulous freeholders from ripping off hard-working families?

[Baroness Penn (Con)]

I can reassure the noble Lord that the Bill does contain provisions to bring greater transparency around how service charges are brought for leaseholders, so that there is greater accountability for what those charges go to and leaseholders have a greater ability to challenge them if they think they are unfair.